Credit Linked Subsidy Scheme for Rural Entrepreneurs to Set Up Custom Hiring Centres (CHC) in West Bengal

The Credit Linked Subsidy Scheme for Rural Entrepreneurs to Set Up Custom Hiring Centres (CHCs) is a flagship initiative under the Farm Mechanization Umbrella Scheme launched by the Agriculture Department, Government of West Bengal on 22nd October 2014. This scheme empowers rural entrepreneurs to establish CHCs, allowing farmers to rent modern farm machinery at affordable rates. It promotes employment generation, enhanced agricultural productivity, and risk mitigation during natural calamities.


Choice of Machinery under CHC

The scheme is implemented across West Bengal, excluding the Kolkata district.

  • Applicants must choose at least four types of machinery or implements and can opt for a maximum of two tractors of the same type.

  • The indicative list of machinery is available in Annexure-V (Page 38) and on the Matirkatha portal.

  • Non-listed machinery can also be proposed, subject to approval as per the latest SMAM guidelines and SPMT recommendations.


Benefits

Pattern of Assistance

  • Subsidy Limit: Up to 40% of the Total Financial Outlay (TFO) or ₹16,00,000, whichever is lower.

  • TFO Includes the cost of machinery, transportation, AMC for 3 years, insurance (1 year), and open shed cost.

  • Minimum TFO: ₹20,00,000

  • Maximum TFO: As per SMAM Guidelines and SPMT recommendation

  • Ancillary Cost Cap:

    • Open shed: Max 5% of TFO

    • Total ancillary costs: Max 10% of TFO

Important Notes

  • Beneficiaries must deposit 25% margin money of TFO to the bank before subsidy release.

  • The subsidy is released as a back-ended subsidy via DBT to the loan account.

  • Machinery must be procured from approved manufacturers/dealers listed on the departmental portal.

  • A beneficiary or their spouse can reapply only after 4 years from the last subsidy release.


Eligibility Criteria

Applicants must meet the following conditions:

  • Individual Farmers registered under the Krishak Bandhu (New) Scheme

  • Or Groups such as:

    • SKUS/PACS/FPO/FPC/FIG/SHG/LAMPS recognized by Govt. bodies

  • Minimum Age: 18 years

  • Land Ownership: Applicant must own/lease/hire land categorized as “commercial, bastu, or viti” for CHC setup

  • Project Cost (TFO): Between ₹20,00,000 and the limit as per SMAM/SPMT guidelines


Exclusions

  • Applicants or their spouses cannot reapply before 4 years from the last subsidy availed for any farm machinery under State schemes (FSSM, OTA-SFI, FMB/FMH & CHC).

  • State/central government employees or retirees, including those from statutory bodies and aided institutions, are not eligible.


Application Process

Online Registration

  1. Visit the official FMS portal.

  2. Click on “New Registration”.

  3. Fill in all required details and submit the registration form.

Online Application

  1. Go to the FMS portal and click on “Log In”.

  2. Enter your Voter Card No and password, and select Season to log in.

  3. Complete the application form with accurate information.

  4. After online submission, submit a hard copy along with:

    • Acknowledgment receipt

    • Passport-sized photo

    • Required documents

    • To the Deputy Director of Agriculture (DDA) of the respective district

  5. An applicant gets one-time edit access before hard copy submission.

  6. Use the online application serial number for all future references.

Note: Applications will be accepted only after an official advertisement in newspapers and the departmental websites.


Documents Required

  • Duly filled Application Form

  • EPIC (Voter ID) as proof of citizenship

  • Krishak Bandhu ID Number (Check via the official portal)

  • AADHAAR Card

  • PAN Card

  • Self-attested copy of updated bank passbook (same branch for subsidy transfer)

  • Title deed/ROR/Lease certificate/Rent receipt of land

  • Detailed project report

  • Machinery quotations

  • Vetted plan and estimate for CHC shed

  • Organizational resolution authorizing signatory (for groups)


Frequently Asked Questions (FAQs)

Q: What is the objective of this scheme?
A: To enable rural entrepreneurs to set up CHCs and provide farm machinery to local farmers at reasonable rates.

Q: Which department launched this scheme?
A: The Agriculture Department, Government of West Bengal.

Q: Who can apply for this scheme?
A: Individual farmers under Krishak Bandhu or recognized groups such as SHGs, FPOs, PACS, etc.

Q: How is the subsidy released?
A: Through Direct Benefit Transfer (DBT) to the applicant’s bank loan account.

Q: Are government employees eligible?
A: No, current or retired government employees are not eligible.

Q: Is there any fee to apply?
A: No official fee is charged for application.

Q: Is there any age limit?
A: Yes, the applicant must be at least 18 years old.

Q: Is there a priority for women?
A: Although not explicitly stated, most schemes encourage female participation.

Q: What is the selection process?
A: Based on application screening, eligibility verification, and SPMT recommendations.


Contact Information

Helpline Number: 8336957298 (Available from 10:00 AM to 6:00 PM)
Portal for Online Application: Matirkatha/FMS Portal


Sources & References

Arjan Patel

Arjan Patel is a passionate financial educator and policy researcher with over a decade of experience in rural banking and subsidy-linked credit schemes. As the founder of www.loansubsidy.in, he is committed to simplifying government loan programs and making financial benefits accessible to every citizen. Known for his grassroots insights and clear explanations, Arjan continues to bridge the gap between policy and people through digital outreach and advisory.

Leave a Reply

Your email address will not be published. Required fields are marked *